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Midland Exploration Inc.: Midland Exploration Signs Option Agreement With Osisko for the Dunn Gold Property

^{Published on 2009-08-11 05:18:16, Last Modified on 2009-08-11 05:18:24 - Market Wire}
 

MONTREAL, QUEBEC--(Marketwire - Aug. 11, 2009) - Midland Exploration Inc. ("Midland") (TSX VENTURE:MD) is pleased to announce the signing of an option agreement with Osisko Mining Corporation ("Osisko") for its Dunn gold property. This property currently held 100% by Midland is located approximately 35 kilometres northeast Rouyn-Noranda in the Abitibi region of Quebec. It consists of 51 claims covering about 1,990 hectares in Clericy and La Pause townships.

Osisko can acquire a 50% interest in the Dunn property during a three-year period under the following conditions:

- A total of $140,000 in cash payments including a payment of $50,000 upon signing the agreement;

- A total of $1,300,000 in exploration expenditures including $320,000 in the first year (firm commitment).

Midland will be the operator until completion of a positive pre-feasibility study. Upon acquiring a 50% interest, Osisko will have the option to acquire an additional 15% interest by delivering a bankable feasibility study under the following conditions:

- Annual cash payments of $40,000;

- A minimum of $200,000 of exploration work each year until the delivery of a bankable feasibility study within a three-year period;

or by solely assuming all exploration, development and mining operations on the Dunn Property, earning a 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).

The Dunn property offers excellent potential for gold mineralization as it covers an 8 kilometre-long stretch of the Manneville fault zone, a secondary splay fault that is an offshoot of the well-known Destor-Porcupine fault, a major gold-bearing structure in the Abitibi. The geological setting on the Dunn property is similar to that of the South Barnat deposit on Osisko's Canadian Malartic property, i.e. fault-juxtaposed clastic sediments and ultramafics cut by a porphyry dyke swarm. Gold showings occur east and west of the property along the Manneville fault, including relatively recent finds by Typhoon Exploration and Cartier Resources. Midland now controls more than 8 kilometre stretch of the fault structure on the property that has seen less than ten drill holes from previous exploration programs.

Midland is pleased to team up with a solid mining company like Osisko. A $539,000 exploration program will begin immediately and will include geological mapping and ground geophysics (magnetic and induced polarization surveys) followed by drilling of selected anomalies (2000 metres).

About Osisko

Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Canadian Malartic deposit currently represents one the biggest gold reserves in Canada for a single deposit, and is still growing through ongoing drilling on new mineralized zones.

About Midland

Midland targets the excellent mineral potential and the favourable investment climate of Quebec to make the discovery of new world-class deposits of gold, base metals and uranium. Midland is proud to count on reputable partners such as Osisko Mining Corporation, Agnico-Eagle Mines Limited, Soquem Inc. and Quest Uranium Corporation. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties. Midland is currently evaluating new opportunities and other projects in order to increase the portfolio of the Company.

This press release was prepared by Gino Roger, registered professional engineer and Qualified Person as defined by NI 43-101.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Midland's periodic reports including the annual report or in the filings made by Midland from time to time with securities regulatory authorities.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.